 So let's one So I'm not gonna make jokes And I'm not going to tell you how excited you are because deeply. I know you are So I've got to talk about I cling like an honor and challenging like they see as product people So why that might ask why this crazy French guy going to London to talk about this But because last year a wave struck us all with a very very gross word at the center So excuse my French actually, I'm French. I can do it Profitability Making money my god how gross that is and I started my career 20 years ago as a Boostraping product entrepreneur, so I know when you invest money that was my own money. So that changes things a little bit, you know But I was struck that how many product people were actually scared by that I Don't wonder why and why in the past We were not having profitability. So I just asked questions, you know, I'm a pretty guy So I ask questions to people and they say, yeah stakeholders always stakeholders So how many of you think that we don't reach profitability because of stakeholders? Okay, you're some of you are honest like good, okay, I had plenty stories about the English people But actually some of you are honest Easy one. Yeah, I know So I said, okay, let's imagine for a moment that the stakeholders are responsible of that Okay, you know, we always have to get them to talk about problems and not solutions Not to have business plans or business cases. Well, thanks to one feature We're gonna sell billions It's actually but what do we do against that? Well, actually, yeah, we talk about problems and not solutions We tell them. Yeah, you know, a road map is not really splanned Etc. Etc. Sometimes we even get them to read the book That I cannot quote because it's a competitor of Well, actually it never works Absolutely never works because it's products planning just like man's planning. No, but it was product So you have people in front of you that are interested by one thing when this will be out, that's it So to get that how to go in the right path and actually They don't need to understand. They need to leave it. They need to have something which called skin in a game So that's an English expression So for the non-English speakers the story is a chicken going to see the pig and saying hey Let's have eggs and bacon and of course for the chicken. That's pretty easy. Yeah for the big There's more involvement, yeah So in that story, we could say we are the pigs That's the first time in your life. You would be happy to be called a pig actually, yeah But are we really? Yeah, so that's the all moment of the presentation Let's do a big all all together. Oh No, good one But I don't think we are and that's not me saying that That's one of the best thinkers of the 21st century The Jean-Claude Van Damme Because Jean-Claude, which is Belgian not French Good Invented one thing called the double impact. I know impressive It was a real office toughest for Volvo, but uh, what about and Actually, there's a law of the product organization That is called the double impact law Is the fact that the product org exists for one reason one reason only? Rishing a life for the company and the user So not only the company and Not only the user And the problem is that so many of us have one saying we need to be user centric You can't and you should not Because at the end no the client is not a king else our product will be Frankenstein creatures So how do we get from that situation of having so many frameworks talking about user centricity and Getting the business at the center of what we do Not harming the user to get there just finding the balance And in a way we are and we must be responsible of this economic success So how how to act like owners Investors I'm not telling you that I have the perfect solution for that Humbly it worked a trip advisor. I Hope it would work for you Else just send me a message on LinkedIn saying it was crap. Okay, feel free no problem a lot of feedback But actually following three principles the first one is the investment principle the second one is a capping principle and the third one is The portfolio principle and we'd get a bit deeper in every one of these So the investment principle let's go back to what we do. Why were we invented? We're inventing to shift technology for a center of cost to a center of profit That's it. That's what we do else production not exists. So If you take that and Think about a product team. What is the job of a product team? But actually you take time One year one million bucks So if you go back tomorrow and you say to a PM or to anyone in the product team You know, you've been given one million euros this year to invest What is the ROI of that? That might make the think a little bit If like me you are 21 teams in 21 million euros So I'm responsible as a CPO of making sure that we're making money have those these 21 millions And every product team needs to prove an ROI. So my responsibility as a CPO is Just between the top line at the bottom line Okay, the product teams are supposed to transform this month this time into not code No fitters nor even impact then into the right ROI on the right segments and With the right metrics that will actually allow us to reach our strategic destination Now once you say that this is us product people How do we reach that we cannot reach that loan we need to transform our stakeholders form mere clients to coin investors They need to put money on the table. They need to have the skin in the game and the easiest way to do this is input. I Insist on that peaches not business cases Because I've never seen a harness business case in my life ever That doesn't exist so peaches basic information that we can challenge second one access to customers Because having a request from a stick order and then Being unable to connect with any user to actually test things is just impossible So in a way to keep pro quo If you want things done if you think that your ID can log the growth of a company You'd give us access to customers and that's part of the pitch a list of people we can contact And if we have to contact them with you as a sales guy customer success or whatever no problem Just put that in a pitch Testing because Even if we like to talk to customers a sales guy or sales girl will always be better than us To test a pitch because it's their job Same thing to create a campaign when it comes to be to see Well the CRM team they are good and sending good emails all they should be but that's another question Then to go to market Progressive reliant no problem. Let's Discuss all together which are the first customers we want to test on what you will do actually ask customers success team services Marketing teams to help us do this Co-owned things and the most important one core responsibility of success and failure There should not be a situation when the stakeholders Just complain about the product teams because we didn't reach X or Y They should be on stage with us. They should commit to the results not the usage. This is our thing But the business How many new contracts? For Which segment and which amount within three months and what will you do to make sure that we are reaching the target? So this is the first thing getting back to being investors all together The second part which is deeply linked with investment is the capping principle How many of you have read or heard about shape up? Okay So this is not new what I'm going to use our principle that we're taking by the base camp team To actually build shape up. I'm not telling you you should do shape up Are just giving elements that you might find if you read the book The first thing is appetite and ambition Imagine that it's your own money Okay, you want to invest it your business angel and Well, you're very rich because you know you chose the black company and you have one million euros to invest I can send you my Account number if you're in the situation, so I don't have them And actually you have just one million not more not less. You don't want to put one million euro on one startup You will try to find a way, you know say maybe 100 and see what happens, but copying exactly this You pay because you want to see more you want to see freely. There was something behind that So what is the ambition link to this? How many weeks do you want to invest on that specific opportunity? Secondly, it applies to the activities that we do on a product team both discovery and delivery because I Guess all of you know the rice score all of you know it rich and packed confidence efforts It was created by intercom an intercom never used it I know Just because it's the blog post that has the better reach So the marketing team is chose to keep it even if they knew that they were not using it themselves Yeah, I've always loved marketing people Sorry about that So the idea with it is really to make sure then if you want to start with a Confidence of 30% You just take two weeks not more to get that level up You will never have 100 persons never exist never will we face uncertainty and certainties everywhere But you need to cap your investment else. You're gonna do design thinking for three months So it's hard. It's hard asking a team to say just two weeks not more than this and then you get up with whatever you know But these are the basic common investments one more week means a week less for another investments It means that you're gonna have an expense of 150 not 100 This will endanger your ROI at the end of the year So this is not negotiable and who's responsible of that the trio So I don't know how many of you use trios as a basic element of a product team, but I guess all of you know doesn't that Vence diagram, you know one that we use for product explaining actually Well, actually, this is the product equation in plain sight This is what a trio should do. I don't care who does what to be honest. I Asked my team is my trios to be able to answer anyone in the company or when and What not when this is gonna be out Then when you're gonna stop investing on product discovery on that one when do you expect results? When will you know if you need to cap to top up a little bit because you think that there's more to get afterwards and This is the same thing from the lean engineer or the product designer or the product manager roughly three people Making the investment decision of the team Then the portfolio principle we got three investments go through capping none portfolio because as any investor You don't put your eggs in the same basket So let's take the example of a restaurant product, which I know and these are fictional examples I just use a stupid scale ROI and risk Okay Let's imagine three kind of investments and that you much relate to that because usually this is exactly what you do when you invest your own money You have one type of it, which is low hanging fruit or enablers low risk low rewards So that might be your improvements or buck fixes that could be an enabler for the marketing team You know that this migration will not create money, but that's okay because you need it That's just like putting money on your bank booklet. Okay Not a lot of interest to get but since you need to do it Then you have the core of what we do product initiatives That should be 60% of what you do minimum Because this is how you build short-term and long-term returns I say short term a long term because what we do usually have a direct impact on the business, but that that should be on the long term Well, the low hanging fruits usually could be really short term and the last one is the real bets Plenty of people use bets when it comes to initiatives and I absolutely hate it Because the bet is by definition something that you put With that's not not with that a lot of information But with very limited knowledge of the impact it could have and the thing that The biggest the startup is the biggest the product company is the less we do bets When you are pre-product market fit everything is a bet actually you don't know which are the results But if you don't do bets as big company You will die You will go on doing local optimum so you need to make sure that you protect that bandwidth when it comes to bets and Maybe you will lose that money Maybe and that's okay Because that's part of the game Bets are here to change the future So when you do low hanging fruits you do the presence When you do products initiatives you build for the near future and when you do bets Well, you build the next future This reputation is not universal. This was the one that we are on the B2C teams And that might change just like any portfolio Depending on market conditions If you have a crisis in front of you, you need to change how you invest. That's pretty obvious Second the team on the tribe Some teams on sub tribes in the organization might be more keen to take risks Others like platform teams. They're here for reliability and security So no, they won't take a lot of bets and that's perfectly okay Company or product stage company stage just like I told you pre-product market fit full bets Same thing for a product new product new brand product, maybe more bets. Same thing. That's absolutely okay Your budget structure, how many of you actually own their own product budgets Meaning that it's not a brand or division that's that you should do that and I give you the money Okay When you're in situation where you kind of a studio lab or whatever and that's the thing Usually in big big companies that not really product centric You cannot invest your money You're an advisor You need to act like an investment advisor saying this is the level of risk of your investment These are the odds of failing so we can go on with that It's up to you. Okay. I did my job Now the good thing is us product people. We are so good at under risking things. This is what we do, right? All the frameworks that we have are here to under risk So he's saying we have a plan if you want to lower the level of risk to make sure that The odds of success are better Still is their decision to take and Then the most important one and I'm gonna insist a lot on this one you Your own level of restolubence You might read plenty of things in books Might listen to podcast might hear a crazy guy crazy French guy on stage but Be self-aware Because not all of us are made to create startups from scratch And it might change with time I'm 42. I know I look younger. Thank you Because I don't have children that might be why not up But I don't want you create a startup. I've done that three times in my life. I know what is the cost and That's okay. I'm old That's it No, yeah, that's hard for me to say that but yeah, see I love Legos so that's okay And That's the same thing in your teams don't push every product manager product designer product engineer to be in situation when they have to do a lot of that because some people are not Self-aware enough and if you push them they might end up with a burnout so being self-aware things change you can prepare people but There's no one way to do product So if you actually respect that You make your product teams and your stakeholders I'd like owners. I think like a corner is really taking responsibility of the success and the use of your resources and I like VCs Because you need to challenge you need to understand what is the best way you can get our girl information this opportunity versus that one When we did that a trip advisor, we handed up with stakeholders actually not asking when we'll see be out, but Okay, let's see what happens depending on the results of the past initiatives And one thing how can we help? I was so Touching It changes and in a way with my stakeholders when I was not talking about Roadmaps, but in a way they were doing now next later by themselves without even using the words because they understood that we had to face uncertainty and Even then couldn't predict the results So it worked they were doing products So if you do that you will actually reach the double impact No, I'm not going to do it. Thank you